Daily Spot

A daily summary of high-profile members of several complexes…[pay] View a more detailed discussion of each at the end of today’s Market Wrap.

Today’s Highlight Natural Gas confirmed a breakout close. Could it develop into a new rally leg?

Dollar Basket Dec Contract (DX, ETF: (UUP, UDN))
Monday’s inside day suggested the bounce wouldn’t extend, but Tuesday’s weakness wasn’t aggressive enough for it to qualify as a retest of prior lows.

Eurodollar Dec Contract (EC, ETF: (FXE))
Monday’s inside day suggested the reaction down from last week’s highs wouldn’t extend before retesting or attacking prior highs. Tuesday’s flat-to-higher ranging stopped short of fulfilling any part of the high’s retest.

Gold Dec Contract (GC, ETF: (GLD))
The reaction down from Monday’s bounce was initially forcible, but that was recovered to range narrowly around unchanged. A close under 1321.00 is still the minimum requirement to signal momentum reversing back down.

Silver Dec Contract (SI, ETF: (SLV))
Tuesday’s gap down was recovered to retest Monday’s high, but did not produce a second consecutive higher confirming close that would have confirmed a breakout underway.

30-year Treasury Dec Contract (US, ETF: (TLT))
Tuesday’s open gapped down to attack the 132-22 pullback limit, whose test has become increasingly likely — even in the most bullish scenario — for as much time as has been spent hovering above it without actually improving. Positive territory was nonetheless recovered, but not yet to produce the outstanding fresh high close.

Crude Oil Nov Contract (CL, ETF: (USO))
Monday’s bounce from under 102.30 attacked 104.00 resistance, but didn’t begin recovering it to suggest momentum reversing up, or react down from it sufficiently to trigger a new downleg.

Natural Gas Nov Contract (NG, ETF: (UNG, UNL))
Tuesday’s gap up extended higher to confirm Monday’s breakout. Now a third higher close is required — albeit not necessarily consecutive — before any reversal down can gain traction. The likely next objective is 3.80, and closing above 3.83 would signal a much bigger rally leg underway.

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